Sales Tax Incentives

Building Materials Used in the Rehabilitation of Real Property Located in an Enterprise Zone

A business or individual that rehabilitates real property located in an enterprise zone may apply for a refund of sales tax paid on the purchase of building materials. The refund claim must be at least $500 and no more than $5,000 unless the number of full-time, permanent employees who reside in an enterprise zone divided by the total number of full-time, permanent employees is 20 percent or greater. If the 20 percent requirement is met, the applicant may receive a refund up to $10,000. The applicant must be the owner, lessee, or lessor of the rehabilitated real property at the time the refund application is submitted.

For more information, see section 212.08(5)(g), Florida Statutes, and Rule 12A-1.107, Florida Administrative Code.

Business Property Used in an Enterprise Zone

A business that purchases property for use in an enterprise zone may apply for a refund of sales tax paid on the property. To be eligible for a refund, the property must:

  • Qualify under section 38 of the Internal Revenue Code of 1954, as amended
  • Have a 5-year class life for federal depreciation purposes
  • Have a minimum sales price of $5,000.

The amount refunded will be no more than $5,000 unless the number of full-time, permanent employees of the business who reside in an enterprise zone divided by the total number of full-time, permanent employees is 20 percent or greater. If the 20 percent requirement is met, the business may receive a refund up to $10,000.

For more information, see s. 212.08(5)(h), F.S., and Rule 12A-1.107, F.A.C.

Community Contribution Tax Credit

A business that makes a donation of cash, property, or goods to an approved community-based organization or government agency may apply for a refund of sales tax. The credit is equal to 50 percent of the value of the donation.

A business may receive no more than $200,000 in community contribution tax credits annually. Only one Form DR-26S may be submitted within a 12-month period. If the amount of refund requested exceeds the sales tax remitted by the business in the previous 12 months, the balance may be claimed by filing an additional refund application in each of the next 3 tax years.

Taxpayers who request a refund of sales tax cannot claim the credit against corporate income tax or insurance premium tax.

For more information, see s. 212.08(5)(q), F.S., and Rule 12A-1.107, F.A.C.

Electrical Energy Used in an Enterprise Zone

A business that is located in an enterprise zone may apply for a 50 percent exemption from sales tax for purchases of electrical energy. To be eligible, a business must be located in an enterprise zone and in a county that has an ordinance exempting such businesses from municipal utility taxes.

If the number of full-time, permanent employees of the business who reside in an enterprise zone divided by the total number full-time, permanent employees is 20 percent or greater, the business may receive an exemption of 100 percent of the sales tax for purchases of electrical energy.

For more information, see s. 212.08(15), F.S., and Rule 12A-1.107, F.A.C.

Enterprise Zone Jobs Credit Against Sales Tax

A business located in an enterprise zone may take a credit against sales tax when it hires new employees who:

  • Reside in an enterprise zone
  • Participate in a welfare transition program

To qualify for the credit, the business must:

  • Show an increase in the number of full-time jobs over the average of the previous 12 months
  • Have employed the eligible employees for at least 3 months
  • Have leased the eligible leased employees for more than 6 months.

The credit may be claimed for up to 24 months.

For more information, see s. 212.096, F.S., and Rule 12A-1.107, F.A.C.